The service Datalinx provides — helping companies and organizations report consumer and commercial credit to the four major credit bureaus — is known by a lot of names. Some people call us third-party processors or aggregators, while others refer to us as a credit reporting service company. One lesser-known name for what Datalinx does is “credit stacking.”
If you’ve never heard of this term, don’t worry — you’re not alone. However, we’re here to answer all of your questions about credit stacking.
What is credit stacking?
Credit stacking is the practice of combining consumer and commercial credit data from multiple data furnishers into one file. This file is then submitted to any or all of the four major credit bureaus, or credit reporting agencies (CRAs).
Why would I need a credit stacking service?
Three of the four credit bureaus requires a company to submit a minimum number of active credit files each time it reports. Otherwise, the credit data you supply about your customers, clients, or tenants would be rejected. Here are the current account minimums:
- Equifax – no minimum
- Experian – 50 accounts
- TransUnion – 100 accounts
- Innovis – 50 accounts
Some organizations simply don’t have this many active accounts. However, there are many reasons they still want to furnish this credit data to the bureaus. This is where a credit stacking service like Datalinx comes in. We combine the credit data from multiple companies or organizations into one file that meets the bureau’s required minimum number of accounts.
What else does a credit stacking service do?
A minimum number of accounts isn’t the only requirement to submit credit data to the major credit bureaus. They also require data furnishers to have submit their data in Metro 2 format. The easiest way to convert your data to Metro 2 format is to use credit bureau reporting software.
This is another way Datalinx helps businesses report to credit bureaus. We provide our clients with proprietary software that seamlessly integrates with data furnishers’ existing systems. We also help you set up the software and send a test file in Metro 2 format to the bureaus to ensure your data will be received accurately and on-time.
Ready to get started?
Datalinx helps organizations like buy here, pay here dealerships, multi-unit housing owners and managers, HOAs, utility companies, and many other businesses and organizations to report credit easily. Reach out to us today for a no-obligation, no-cost evaluation of your third-party processing service — or credit stacking — needs!
Speak Your Mind